Asset Allocation in Retirement
Comment posted to “Reduce Stock Exposure in Retirement, or Gradually Increase It?,” by Michael Kitces and Wade Pfau, in the April 2014 AAII Journal.
The analysis makes sense on paper, but there is one factor not mentioned at all in this article. Assuming the 20-to 30-year retirement mentioned, the retiree would be 85 to 95 years old. The amount of analysis and management of the stock portfolio suggested would be beyond the mental capability of most retirees of that age. Having lived in a retirement (ages 55 and older) community for over 18 years, I see that decline on a daily basis. In addition, passing on a stock portfolio of that magnitude to the widow could be problematic.
— G. Flowers from Arizona
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